|PORTLAND, Ore., April 08, 2021 — Golden Leaf Holdings Ltd. (CSE:GLH) (OTCQB:GLDFF) (“Golden Leaf” or the “Company”), a premier, consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, today announces the closing of its purchase of majority ownership in Fifth & Root, Inc. (“Fifth & Root”), a nationally recognized CBD skincare brand based in California.
Fifth & Root is available online at www.fifthandroot.com, and in major retailers including Ulta Beauty, Nordstrom, Anthropologie and Urban Outfitters. “The acquisition of these distribution channels greatly increases the Company’s visibility and reach, and continues to advance our “Crawl, Walk, Run” strategic approach. As we look forward to the eventual federal legalization of cannabis, Fifth & Root’s commerce platform and partnerships will position the Company favorably to capitalize on the evolving marketplace. Fifth & Root, a leader in CBD beauty, offers an exceptional line of clean and innovative products. We’re thrilled to add them to Golden Leaf Holdings’ portfolio of products and look forward to growing this brand within the burgeoning CBD skincare space,” stated Jeff Yapp, GLH’s CEO.
Fifth & Root Founder and Abstrax CEO Max Koby said, “Golden Leaf Holdings has a long-standing business relationship with Abstrax and has proven they have a skilled management team, who have executed well and effectively expanded their product offerings and markets with a focus on quality. As Golden Leaf continues to expand their footprint, we hope that this new partnership will allow them to provide innovative CBD products nationwide through the largest and best beauty retail partners in the country, to consumers looking for clean beauty products that harness the power of botanicals.”
The Fifth & Root brand was designed with a ‘GenZennial’ customer in mind. “We wanted to capture the vibe of the innovative and experiential formulas in the branding and packaging,” said Leilah Mundt, Founder of beauty branding and sales agency, Crème Collective. “The formulas are bright and alive with sophisticated terpene blends that smell incredible, as well as being a proven delivery system for the active ingredients. Our goal was to mirror this in all brand touchpoints.”
The Company will pay total consideration valued at up to US$1,687,500, consisting of a US$250,000 cash payment paid at closing, and up to 30,666,666 common shares of the Company (“GLH Shares”) representing eighty percent ownership. Ninety percent of the consideration shares were issued at closing and ten percent of the GLH Shares will be issued if certain post-closing targets are met by Fifth & Root. The Company used funds on hand to fund the cash portion of the purchase price. Based on favorable terms in Fifth & Root’s manufacturing and sales contracts the Company anticipates this business unit will remain working capital neutral as sales grow.
Golden Leaf owns and operates Oregon-based Chalice Farms, a health- and wellness-driven, vertically integrated cannabis business with seven dispensaries in the Portland metropolitan area. Fifth & Root currently offers six products and is sold in over 425 retail locations throughout the US online at www.fifthandroot.com and in major retailers, including Ulta Beauty, Nordstrom, Urban Outfitters and Anthropologie, and online at www.fifthandroot.com.
About Fifth & Root:
Born from an obsession with plants and love of clean skincare, Fifth & Root was female-founded in 2018 and works to bring transformative, spell-binding skincare to everyone. Passionate about vibrant skincare solutions made with the best of nature, Fifth & Root formulates its products while omitting toxins and irritants including toxic chemicals, synthetics, GMO’s, parabens, phthalates, harsh preservatives, skin-stripping sulfates and animal byproducts. Unlike other CBD skincare companies, Fifth & Root formulas are uniquely created and developed using functional botanical ingredients and components by women scientists and herbalists in the research & development and manufacturing facilities in Irvine, CA. Fifth & Root can be found in national retailers including Ulta Beauty, Nordstrom, Urban Outfitters, Anthropologie, Revolve and more. Additional information is available on their website, Facebook and Instagram.